@theMarket: Fed Disappoints, Markets Swoon, While Tariff Talks ContinueBy Bill Schmick,
01:41PM / Friday, April 18, 2025 | |
On Thursday, investors hoped that Fed Chair Jerome Powell, speaking in Chicago at the Economic Club, would assure markets that he would backstop any downside from President Trump's policies. They were disappointed.
Even worse, he said, "The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth."
The fact that the leader of the world's most powerful central bank seemed to confirm the worst fears of investors triggered another $1 trillion sell-off in equity markets. The president quickly posted his 0 Comments
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The Retired Investor: Market Uncertainty Takes Its TollBy Bill Schmick,
04:12PM / Thursday, April 17, 2025 | |
You may have weathered the Financial Crisis and the COVID-19 pandemic sell-off, some may even remember the Dot.Com boom and bust, but this time around feels different. That's because it is.
In my entire career, I have never seen the stock market move 8.3 percent in 34 minutes on a rumor. That is what happened a few days back. To put that in perspective, the S&P 500 Index gains in minutes an entire year's performance. The following day it gave back half of that. Sure, we can blame these moves on computer-driven trading, algorithms, options, and the like but it doesn't change what happened and could easily happen again.
If you feel the 0 Comments
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@theMarket: The Trump Tariff PauseBy Bill Schmick,
02:08PM / Friday, April 11, 2025 | |
This week, the stock markets had one of their largest single-day rallies since 2012, after President Trump suddenly put some of his tariffs on hold for 90 days. He then gave back half of it the following day. Investors wonder if this was a bear market bounce or if it could mean something more.
Media sources are crediting the market melt-up to various factors. Some believe Trump decided to soften his stance on tariffs after spending the weekend huddled with his U.S. Treasury Secretary Scott Bessent. Bessent, who the business community believes is a voice of reason in a room full of tariff advocates, had urged the president to pause his reciprocal tariff deadline. He 0 Comments
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The Retired Investor: Bull and Bear Case for U.S. EconomyBy Bill Schmick,
04:38PM / Thursday, April 10, 2025 | |
Are we on the verge of an American economic and social revival as Donald Trump promises, or on the eve of destruction as his critics claim? That sounds extreme, but in this partisan world we live in binary events are all we care about.
If all unfolds according to the Trump policy playbook, inflation will be lower, the country more substantial, and we will be able to grow our way out of this debt crisis through higher tax revenues from a booming economy. This land of plenty will take time to achieve, they warn, so for now, you must have faith in the narrative.
The bull case continues with tax cuts, government spending reductions, and tariffs that will 0 Comments
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@theMarket: 'Demolition Day' in global marketsBy Bill Schmick,
02:21PM / Friday, April 04, 2025 | |
Stocks fell to kick off the second quarter following the worst quarterly performance for equities in the past three years. The culprit was Wednesday evening's "Liberation Day" announcement of tariffs far worse than the markets expected.
By now, most readers know that the president not only levied a 10 percent tariff on all nations across the board, but he also added reciprocal tariffs to that total on individual nations. China was signaled out for the harshest treatment with a combined 54 percent total round of tariffs. In response, China announced 34 percent tariffs on U.S. goods.
As I warned readers last week, these tariffs would be 0 Comments
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